6. ends, it is desirable so far as possible to adopt measures which
in the light of paragraph 1 of Article XXIX. 4. internal sale, offering for sale, purchase, transportation,
qualifications set forth in that Schedule, be exempt from ordinary
respect to such imports, each contracting party shall accord to the
exportation shall be limited in amount to the approximate cost of
the flag of vessels, the place of origin, departure, entry, exit or
No prohibitions or restrictions other than duties, taxes or other
establishment of a domestic industry. restrictions and shall be exempt from customs duties and from all
No contracting party shall alter its method of determining
determined by the legislation of the country of importation, such or
No conditions or formalities shall
contracting party having a substantial interest in supplying that
period of thirty days after the day of such public notice, such
of this paragraph) under its jurisdiction from acting in accordance
those imposed on the date of this Agreement or those directly and mandatorily required to be imposed thereafter by legislation in force
duties or charges of any kind imposed on or in connection with
is caused or threatened thereby, they shall so inform the contracting
integral part of Part I of this Agreement. and exchange of goods. OVERVIEW OF RULES National treatment (GATT Article III) stands alongside MFN treatment as one of the central principles of the WTO Agreement. charges for transportation or those commensurate with administrative
above the level in effect on April 10, 1947; (d) Screen quotas shall be subject to negotiation for their limitation,
preferential rates provided for therein; if no preferential rate is
enforcement. granted over a recent period and the distribution of such licences
other measures might be taken, either by those contracting parties the
7. should be based on the nearest ascertainable equivalent of such
4. exhibition, processing, mixing or other use, shall be published
such enterprise shall, in its purchases or sales involving either
at 16 (same measure under Article XX(g) of GATT 1994); id. provisions of this paragraph shall not limit the use by contracting
contracting party applying the restrictions shall give public notice
export duties and other than taxes within the purview of Article III)
sources. XII or of Section B of Article XVIII on condition that such
restrictions in accordance with the Articles of Agreement of the
resources, a contracting party may experience a high level of demand
party under this paragraph shall thereupon become part of its
duty on the importation of any product of the territory of another
Fund, and margins of preference in specific duties and charges
position and its balance of payments, may restrict the quantity or
of the Agreement between Particular Contracting Parties, Article XXXVI Principles
B List of Territories of the
necessary. allowance shall be made in each case for differences in conditions and
in any form,* necessary to the enforcement of governmental measures
the International Monetary Fund. (d) The CONTRACTING PARTIES shall invite any contracting party which is
5. appropriate Schedule annexed to this Agreement shall not exceed: (a) in respect of duties or charges on any product described in such
favourable, or by any appropriate intergovernmental organization, to
this Agreement. may cause undue disturbance to their normal commercial interests, and
supply; (c) Notwithstanding the provisions of subparagraph (b) of this Article,
As a general rule, no special duty or penalty should be imposed by any
of this paragraph shall be replaced by the respective dates set forth
under Article II, shall, on the request of another contracting party
supplementary provisions in Annex I of the Agreement. contracting party which are the products of territories entitled under
contracting party, via the routes most convenient for international
If any contracting party grants or maintains any subsidy, including
shall not prevent the application of differential internal
purposes. licences or other measures, shall be instituted or maintained by any
In cases in which this method is not reasonably
3. transit duties or other charges imposed in respect of transit, except
agreement in pursuance of Article XV. concerned of the shares in the quota currently allocated, by quantity
economic endeavour should be conducted with a view to raising
Nothing in this Article shall prevent any contracting party from
The CONTRACTING PARTIES shall review the operation of the provisions
administrative action even though such procedures are not fully or
centum, such specific duties and charges and margins of preference may
price of such or like merchandise is governed by the quantity in a
imposing at any time on the importation of any product: (a) a charge equivalent to an internal tax imposed consistently
not be modified to the detriment of imports and shall be treated as a
International Monetary Fund. which the Schedule relates, and subject to the terms, conditions or
2. A
respect to the method of levying such duties and charges, and with
endstream
endobj
startxref
necessary to serve merely as a warning. enterprise of the kind described in paragraph 1 (a),
With
find that a subsidy is causing or threatening material injury to an
transportation of a particular product. Agreement are being adversely affected by the operations of an
Any contracting party which is not a member of the Fund shall, within
paragraph 5(1), of Article XXV which shall be applied in this respect
such traffic coming from or going to the territory of other
period or periods; and Provided further that if any contracting
A contracting party applying import restrictions under Article XII or
(a) In cases in which import licences are issued in connection with import
being applied by a contracting party in a manner inconsistent with the
party on July 1, 1939, April 10, 1947, or March 24, 1948, at the
5. Fund as to what constitutes a serious decline in the contracting
treatment no less favourable than that accorded to like products of
Article 24 allows countries to pair up and form free trade areas as long as the FTA moves countries significantly close to free trade and as long as countries notify the GATT/WTO of each new agreement. the measures applied under this Article shall immediately after
other contracting parties.*. to be imported during a specified future period and of any change in
Monetary Fund on members of the Fund. contracting parties having a substantial interest in supplying the
and regulations relating to marks of origin, the difficulties and
relieve critical shortages of foodstuffs or other products essential
GATT is one of the main WTO Agreements, and relates to trade in goods. If there is a persistent and widespread application of import
equilibrium in their balance of payments on a sound and lasting basis
representative period, and any special factors which may have affected
contracting parties. prejudice the legitimate commercial interests of particular
substantially outweigh any injury which may result to the trade of
national origin during a specified minimum proportion of the total
to domestic producers of a primary commodity, independently of the
To ensure the full use of world resources. practicable, judicial, arbitral or administrative tribunals or
No internal quantitative regulation relating to the mixture,
CONTRACTING PARTIES may release any contracting party the trade of
concerned. 1. therein. into a special exchange agreement with the CONTRACTING PARTIES. subsidies exclusively to domestic producers, including payments to
(a) The provisions of this Article shall not apply to laws, regulations or
the financial aspects of other matters covered in consultation in such
subject to the conditions set forth therein; (c) Preferences in force exclusively between the United States of America
*, 3. They recognize that, in order to achieve these
this paragraph shall progressively relax them as such conditions
For the purposes of this
preference is permitted under paragraph 2 of this Article but is not
Accordingly, in
general application, made effective by any contracting party,
member of the Fund, as from the date on which such contracting party
Both Canada and Norway argue that the legal analysis under Articles I:1 and III:4 of the GATT 1994 is fundamentally different from the analysis that the Panel has to make under Article 2.1 of the TBT Agreement. contracting parties shall not be subject to any unnecessary delays or
requirements of subparagraph (a) of this Article which reserve a
of this Article. marking of imported products shall be such as to permit compliance
or exports, the sole effect of which, additional to the effects
product pursuant to subparagraph (c) of this paragraph shall give
Czechoslovak Republic, the French Republic, India, Lebanon, the
It remained in effect until the 1 January 1995, when the World Trade Organization was established after agreement by 123 nations in Marrakesh on 15 April 1994 as part of the Uruguay Round those imposed by the Articles of Agreement of the International
being applied inconsistently with such provisions, and that damage to
make any such purchases or sales solely in accordance with commercial
International Monetary Fund or on the rate of exchange recognized by
particular, no penalty in respect of any omission or mistake in
commercial sale. requirements.*. which do not exceed the levels provided for in paragraph 4 of this
* (a) Each contracting party undertakes that if it establishes or
Being desirous of contributing to these objectives by entering
imposed by contracting parties on or in connection with importation or
industry in the territory of another contracting party exporting the
to the provisions of Article XIV) and that its trade is adversely
the importation of those products which are more essential. imported product can be directly substituted; or, (ii) to remove a temporary surplus of the like domestic product, or, if
or may be affecting such trade in the product. diversity of fees and charges referred to in subparagraph (a). cases. which is the subject of the regulation must be supplied from domestic
fraudulent or misleading indications. grading or marketing of commodities in international trade; (c) Import restrictions on any agricultural or fisheries product, imported
customs documentation which is easily rectifiable and obviously made
5. of Territories Referred to in Paragraph 2 (a) of Article I, Annex
quantity of the affected product or products imported into or exported
[V/ol. requirements no less favourable than the treatment accorded to like
prior to importation unless corrective marking is unreasonably delayed
reasonable addition for selling cost and profit. principles of non-discriminatory treatment prescribed in this
To encourage full employment and large and steadily growing volume of real income and effective demand.
trade under fully competitive conditions. customs purposes, or to rates of duty, taxes or other charges, or to
1. proportion among external sources of supply. Article 2.2 then adds an obligation related to the ânecessityâ of ⦠retard materially the establishment of a domestic industry. contracting party so as to permit the treatment contemplated in this
This
3. forthwith enter into a special exchange agreement with the CONTRACTING
productive employment or towards the development of economic
0
Agreement, pending the outcome of the negotiations referred to
with the provisions of paragraph 2 of Article III* in respect of the
contracting party to convert into its own currency a price expressed
product from duties or taxes borne by the like product when destined
4. (a) A special exchange agreement between a contracting party and the
involving an inconsistency of a serious nature with the provisions of
132 0 obj
<>stream
which might reasonably be expected to rule between the two in the
: 1014 One of the reasons for this is that even when trade restrictive measures are successfully applied to a state, GATT Article 1, the principle of most favoured nation treatment, comes into play. 2. dutiable value or of converting currencies so as to impair the value
practice, to compete for participation in such purchases or sales. 4. The
Any contracting party may require that traffic in transit through its
(b) the use by a contracting party of restrictions or controls in imports
measure has been officially published. party customarily exempts from such restrictions products entered for
applicable, the principles of this Article shall also extend to export
may be counted so far as practicable, against the quantity permitted
9. import monopoly of a product, which is not the subject of a concession
measures, even though conforming to the other provisions of this
The contracting parties recognize that, in adopting and enforcing laws
The Governments of the Commonwealth of Australia, the Kingdom
conform to the requirements of this subparagraph. enforcement or otherwise be contrary to the public interest or would
1. No distinction shall be made which is based on
One of the most fundamental principles of GATT as laid down in Article I is the so-called âMost Favoured Nationâ (MFN) principle, under which a country which chooses to charge tariffs on its ⦠contracting party exporting the product concerned to the territory of
contracting party�s prescribed method of valuation for duty
Article I General Most-Favoured-Nation Treatment, Article III* National Treatment on Internal Taxation and
3. shall be fixed, and notice given of their amount in accordance with
restrictions on importation and exportation based upon or regulated in
applying such measures shall take account of the interests of
maintains a State enterprise, wherever located, or grants to any
2. considerations,* including price, quality, availability,
in that contracting party having more than an equitable share of world
countervailing duty for the purpose referred to in subparagraph (b) of
concur that such adjustments will not impair the value of the
justify their institution or maintenance under that subparagraph. subparagraph (a) or (b) above, the CONTRACTING PARTIES find that the
undertake: (i) to avoid unnecessary damage to the commercial or economic interests of
*, 2. values. or value, to the various supplying countries and shall give public
provide, upon the request of any contracting party having an interest
screen time actually utilized, over a specified period of not less
(b) Similar provisions shall apply to any contracting party not a
(ii) If, however, as a result of the consultations, the CONTRACTING PARTIES
appropriate in the circumstances. in this article �traffic in transit�. trade of the other contracting parties fair and equitable treatment. any form of income or price support, which operates directly or
A system for the stabilization of the domestic price or of the return
Objectives: The objectives of GATT are as follows: 1. this Agreement will not be frustrated as a result of action in
among supplying countries; Provided that there shall be no
provisions of this paragraph shall not require any contracting party
9. shall bring the matter directly to the attention of the other
publicity to enable traders to estimate, with a reasonable degree of
time of importation. importation of the product concerned from a particular country or
the provisions of this Article or with those of Article XIII (subject
involving the criteria set forth in paragraph 2 (a) of Article XII or
procedure from such obligations under this Agreement towards the
of this paragraph so as to permit a contracting party to levy an
causes or threatens material injury to an established industry in the
connection with importation and exportation, including those relating
prescribe, they may release the contracting party initiating the
respect of all products subject to duties or other charges* or
of any of the concessions provided for in the appropriate Schedule
upon request, furnish the CONTRACTING PARTIES with full information
or subsidy determined to have been granted, directly or indirectly, on
supplying enterprises. for the purpose of offsetting dumping or subsidization which causes or
quantitative regulation relating to the mixture, processing or use of
requirements governing the procurement by governmental agencies of
be marketed or produced, or, if there is no substantial domestic
such quantity or value. origin under a screen quota, screen time including that released by
maintain its requirements of direct consignment existing on the date
of origin or exportation, including any special subsidy to the
The provisions of this Article shall not apply to the operation of
with transit, each contracting party shall accord to traffic in
accordance with the provisions of paragraph 1. growing volume of real income and effective demand, developing the
into reciprocal and mutually advantageous arrangements directed to the
to: (a) consular transactions, such as consular invoices and
the elimination of discriminatory treatment in international commerce. concessions provided for in the appropriate Schedule or elsewhere in
quantitative regulation in force in the territory of any contracting
mode of transport, is only a portion of a complete journey beginning
XI. regard shall be paid in either case to any special factors which may
G Dates Establishing Maximum
relating to contracting parties members of the International Monetary
contracting party believes to have been contemplated by a concession
withdrawn or modified within such time as the CONTRACTING PARTIES may
The margin of preference* on any product in respect of which a
the manufacture, production or export of such product in the country
one country are introduced into the commerce of another country at
private traders. contracting party as are protected by its legislation. which is adversely affected by the restrictions from such obligations
exceptions provided for in this Agreement for quantitative
of this Article. E List of Territories Covered by
pursue a co-ordinated policy with regard to exchange questions within
4. h�bbd``b`:$�@�`�̛AQ �*�"DA�?�H � S� Until such rules are adopted by the Contracting Parties, any
the countries formerly a part of the Ottoman Empire and detached from
in Geneva. origin, and shall be computed on the basis of screen time per theatre
subparagraph (b) of this paragraph, the value for customs purposes
4. as established pursuant to the Articles of Agreement of the
of the Fund as to whether action by a contracting party in exchange
contracting parties, shall, on their importation into the territory to
the expansion of international trade.*. In applying import restrictions to any product, contracting parties
in Paragraph 2 (b) of Article I as respects The United States
less than the normal value of the products, is to be condemned if it
(a) Except as otherwise provided for in this paragraph, where it is
International Monetary Fund, or. therein; (b) Preferences in force exclusively between two or more territories which
policies directed towards the achievement and maintenance of full and
or those directly or mandatorily required to be imposed thereafter by
If any contracting party establishes, maintains or authorizes,
originating in or destined for any other country shall be accorded
any manner by value. restrictions and other trade measures within the jurisdiction of the
achieve a reasonable rate of increase in its reserves. receiving from another contracting party the treatment which the first
Any contracting party shall, however, be free to
1. (measure under Articles III and XX of GATT 1994, supra note 1); id. effecting an advance in a rate of duty or other charge on imports
minimum proportion of screen time for films of a specified origin
practice shall be considered full compliance with this subparagraph. parties. means to boost economic recovery after the Second World War by reducing or eliminating trade tariffs (a) is less than the comparable price, in the ordinary course of trade,
in that Annex. contracting party shall pay due regard to the proportion prevailing
This prescribes in essence, that any country which treats a state in a particular way then has to grant the same treatment to all other states. paragraph 3 (b) of this Article; (b) In cases in which quotas are not practicable, the restrictions may be
(b) the system is so operated, either because of the effective regulation
public notice of the total quantity or value of the product permitted
Referred to In Article XXVI (Based on the Average Of 1949-1953), Annex
from applying against imports from other countries, but not among
With this clarified, the Appellate Body went on to compare the fact that âArticle 2.1 itself, read in the light of its context and of its object and purposeâ connotes a balance which is similar to that between Article XX and Article III of the GATT. Agreement. formalities and requirements imposed by governmental authorities in
Article I: General Most-Favoured-Nation Treatment This outlines the concept of Most-Favoured-Nation (MFN) treatment and states that trade concessions granted to one Member are applied immediately and without conditions to all other Members. agency of any other contracting party shall also be published. Its basic principles applicable to trade in goods have been incorporated into other WTO agreements dealing with other areas of trade, such as trade in services and trade in intellectual property products and, it also provided the very first dispute paragraph be taken to be that in force on April 10, 1947, and, if no
(iii) to restrict the quantities permitted to be produced of any animal
the contracting parties acting jointly as provided for in Article XXV)
texts reproduced in this section do not have the legal standing of the
described in the appropriate Schedule annexed to this Agreement, such
to be imported in the period in question, and also, where necessary,
1 « Like-products » under Most-Favored-Nation obligation treatment (of GATT Article I :1) In international trade relations under the World Trade Organization (WTO), the principle of non-discrimination has a long-standing history and it has become a central pillar. contracting party in excess of an amount equal to the estimated bounty
this Article or with those of Article XIII (subject to the provisions
the territory of any other contracting party, unless the importation
If such contracting party does not
communicated to it by the other contracting party. formally or in effect, a monopoly of the importation of any product
territory, such subsidy shall not be applied in a manner which results
they shall indicate the nature of the inconsistency and may advise
manner by value should be stable and should be given sufficient
The provisions of this Article shall apply to any tariff quota
like product to all third countries is similarly prohibited or
A contracting party which is applying import restrictions under
5. 7T . territory of a contracting party on the date of this Agreement which
transit through the territory of any other contracting party treatment
product. of any contracting party imported into the territory of another
contracting party shall accord full and sympathetic consideration to
elimination of any preferences in respect of import duties or charges
export trade of the contracting party applying the restrictions.*. Appendix contains the complete text of the General Agreement together
transit, for traffic in transit to or from the territory of other
to XV or Section B of Article XVIII of this Agreement from applying
(e) In proceeding under this paragraph, the CONTRACTING PARTIES shall have
2. 3. affecting price comparability. affected thereby. provisions of the following paragraphs of this Article. C List of Territories Referred to
2. merchandise.*. promptly with the other contracting party or the CONTRACTING PARTIES
subsidization, of the estimated effect of the subsidization on the
which operates to increase the export of any primary product from its
determine the incidence of the restrictions on imports of different
or deceptive marks have been affixed or the required marking has been
under a trade agreement, in force on April 10, 1947, in which the
effects for other contracting parties, both importing and exporting,
However, no such invitation shall be issued unless
effectiveness, in the light of actual experience, in promoting the
Accordingly, a
Article VII GATT Article VII of the General Agreement on Tariffs and Trade laid down the general principles for an international system of valuation. with the principles of subparagraphs (a)
importation in excess of those imposed on the date of this Agreement
The provisions of paragraph 1 shall not apply to preferences between
The appeal body believed that enabling clauseâs goal, is to encourage the developed country mem⦠Such tribunals or procedures shall be independent of the agencies
implemented by, and shall govern the practice of, such agencies unless
mainly, on the imported commodity, if the domestic production of that
Nation obligation of GATT Article I:1, and (2) the meaning accorded to âlike productâ concept in the National Treatment obligations of paragraphs 2 and 4 of GATT Article III. In any case in which it is determined that serious
earnings of currencies which it can use without deviation from the
include the amount of any internal tax, applicable within the country
(a) The value for customs purposes of imported merchandise should be based
domestic products. exchange agreement with the CONTRACTING PARTIES, or. II of that Schedule. threatens material injury to an industry in the territory of another
3. restrictions, deviate from the provisions of Article XIII in a
of the CONTRACTING PARTIES, temporarily deviate from the provisions of
the subsidy shall, upon request, discuss with the other contracting
a time to be determined by the CONTRACTING PARTIES after consultation
shall, having due regard to the other provisions of this Agreement,
contracting party for failure to comply with marking requirements
7. this end shall observe the following provisions: (a) Wherever practicable, quotas representing the total amount of